First IFRS Financial Statements – FAQ | IFRS

First IFRS financial statements

The first IFRS financial statements must include at least:

  • for the reporting year and the comparative year:
    • a statement of financial position;
    • a statement of profit or loss and other comprehensive income;
    • separate statements of profit or loss, if presented;
    • a statement of cash flows;
    • a statement of changes in equity;
    • notes to the financial statements;
  • at the date of transition to IFRSs:
    • an opening IFRS statement of financial position;
    • notes to the financial statements.

Reference: [IFRS 1, paras 21 – 22]

As a result an entity’s first IFRSs financial statements must include at least the following (assuming that the company is adopting IFRSs in the fiscal year ended December 31, 20X3 and has a transition date of January 1, 20X2):

Reporting year ended December 31, 20×3

Comparative year ended December 31, 20×2

Opening as at January 1, 20×2

Statement of financial position

Statement of financial position

Statement of financial position

Statement of profit or loss and other comprehensive income

Statement of profit or loss and other comprehensive income

Statement of cash flows

Statement of cash flows

Statement of changes in equity

Statement of changes in equity

Notes to the financial statements

Notes to the financial statements

Notes to the financial statements

Note that the dates presented are examples for an entity with a calendar year end that presents only one comparative period.

An entity that chooses to present financial statements containing historical summaries or comparative information in accordance with previous GAAP must:

  • label the previous GAAP information prominently as not being prepared in accordance with IFRSs; and
  • disclose the nature of the main adjustments that would make it comply with IFRSs; these adjustments need not be quantified.

Opening IFRS Statement of Financial Position

[IFRS 1, paras 6, 10 – 11]

An entity must prepare and present an opening IFRSs statement of financial position at the date of transition to IFRSs, which is the starting point for the entity’s accounting in accordance with IFRSs. Therefore, the entity must, in its opening IFRSs statement of financial position:

  • recognize all assets and liabilities required by IFRSs;
  • derecognize all assets and liabilities not permitted by IFRSs;
  • classify all assets, liabilities and components of equity in accordance with IFRSs; and
  • measure all assets and liabilities in accordance with IFRSs.

Any adjustments resulting from applying IFRSs instead of previous GAAP in the opening IFRS statement of financial position are recognized directly in retained earnings (or, if appropriate, another category of equity) at the date of transition to IFRSs.

Date of Transition to IFRSs

[IFRS 1, Appendix A]

The date of transition to IFRSs is the beginning of the earliest period for which an entity presents full comparative information under IFRSs in its first IFRS financial statements.

Last Local/previous GAAP Financial statements

20×1

20×2

20×3

Opening

As at 1 January 20×1

As at 1 January 20×2

Date of transition to IFRS

Opening IFRS Statement of Financial position

As at 1 January 20×3

Closing

As at 31 December 20×1

As at 31 December 20×2

As at 31 December 20×3

Comparative year

(Restated to IFRS)

First IFRS year

First IFRS Financial Statements

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